Porter Stansberry

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Frank Porter Stansberry
Residence Baltimore, Maryland
Nationality American
Alma mater University of Florida
Occupation Financial publisher, Founder Stansberry & Associates
Website
Porter Stansberry

Frank Porter Stansberry is an American financial publisher and author. Stansberry founded Stansberry & Associates Investment Research, a private publishing company based in Baltimore, Maryland, in 1999.[1] Porter is the author of the monthly newsletter, Stansberry's Investment Advisory, which covers investments and investment theory in commodities, real estate, and the stock market. Stansberry is also the creator of the 2011 online video and infomercial titled "End of America" (77 min).[2][3] In 2002, the SEC brought a case for securities fraud and a federal judge fined him $1.5 million in 2007.[4]

Career[edit]

In 1999 Stansberry founded Stansberry & Associates Investment Research, a private publishing company based in Baltimore, Maryland.[5] He is the editor of the internet financial newsletters Porter Stansberry's Investment Advisory and Porter Stansberry’s Put Strategy Report.[5] He also contributes regularly to Daily Wealth and The Growth Stock Wire, other Stansberry & Associates publications.[6]

Stansberry & Associates publishes investment research.[5] Agora, Inc., Stansberry & Associates’s parent company, states that S&A has subscribers in more than 100 countries.[7]

He became the first American editor of the Fleet Street Letter, Britain’s longest-running financial newsletter.[5][8] He later opened his own financial advisory.

Stansberry has been interviewed on Yahoo! Finance’s Tech Ticker, Radio America, the Off the Grid podcast, and Alex Jones’s InfoWars radio show.[9][10][11][12][13][14]

Stanberry is a frequent contributor to WorldNet Daily, an American web site that publishes news and associated content from the perspective of U.S. conservatives and the political right.

End of America[edit]

In 2010, Stansberry published a viral 77-minute infomercial titled "End of America.[15]

SEC case[edit]

In 2003, the U.S. Securities and Exchange Commission brought a case against Stansberry for a "scheme to defraud public investors by disseminating false information in several Internet newsletters."[1][16][17] A federal court, upheld on appeal, found that Stansberry had sent out a newsletter to subscribers, predicting one company's stock was about to soar. Stansberry maintains that his information came from a company executive; the court found that he fabricated the source.[1] The company's stock price did increase for the reasons Stansberry had pinpointed, but about a month later than Stansberry had predicted.[1] In 2007, he and his investment firm, then called "Pirate Investor," were ordered by a U.S. District Court to pay $1.5 million in restitution and civil penalties. The court rejected Stansberry’s 1st Amendment defense, saying "Stansberry's conduct undoubtedly involved deliberate fraud, making statements that he knew to be false."[16]

Financial and economic predictions[edit]

United States[edit]

Stansberry's 2011 online video and infomercial titled "End of America" paints a grim picture of the financial future of the United States.[2][3] The 77-minute video forecasts the end of America's global economic dominance, which Stansberry predicts might possibly result in rioting and protests across the country.[5]

In the video and other articles and interviews, Stansberry warns that the American dollar will stop being accepted as the global currency, and that this process has already started.[9][18] He criticizes high U.S. government debt as a cause for this.[5] To prepare for the economic collapse, he advises stocking up on gold and silver, moving assets abroad, and pursuing bearish investment strategies. He also advises stocking up food, water, and other basic supplies away from urban areas.[19]

Financial website The Motley Fool concluded that "Stansberry’s core argument is sound ... although it’s not quite as dire as he would like you to believe."[19]

Stansberry had taken a consistently bearish view of the economy, arguing that stock-market growth reflects inflationary momentum rather than real economic recovery, and that stability in the U.S. Treasury market is masking a bubble.[11][19][20] In 2012, however, he predicted that, beginning in 2015, there would be "a new age of American prosperity, the likes of which we haven't seen in decades",[21] due to a petroleum and natural gas boom. He added that one effect of this prosperity would be that Barack Obama would be able to obtain a third term as President of the United States either directly, although the Twenty-second Amendment sets a two-term limit, or by having his wife Michelle Obama get elected.[21]

Europe[edit]

Stansberry’s analysis of the European economy focuses on the Union's unsustainable debts. He argues that E.U. governments have pledged more of their treasuries’ money to support banks and bailouts than they can pay. As a result, the Euro is likely to fail due to the Eurozone's insolvency. “Sooner or later, the taxpayers will say ‘enough’ and the whole thing will unravel,” he wrote in a follow-up to “End of America”.[9][18][20]

In an August, 2011 online debate with James Altucher, Stansberry predicted that Europe's debt crisis would intensify in the coming year, with Italy's Unicredit being "the next big domino to fall."[20] Stansberry predicted that once Unicredit fell, Germany would not bail it out, and that Germany would leave the European Union within the next twelve months (by August, 2012).[20] Additionally, Stansberry predicted that the U.S. Dollar would lose its reserve status and the U.S Treasury "bubble" would burst.[20] In light of these oncoming financial calamities, Stansberry recommended that investors convert their assets to 50% gold and 50% cash, if they were not willing (or able) to actively short stocks.[20]

References[edit]

  1. ^ a b c d Liptak, Adam. "E-mail Stock Tip Tests Limits of Security Laws". The New York Times. Retrieved 3 August 2003. 
  2. ^ a b "The End of America". . The original URL is www.stansberryresearch.com/pro/1011PSIENDVD/PPSIM1AJ/PR but one cannot pause the video.
  3. ^ a b Curtin, Stacy. ""The End of America": Porter Stansberry Sees the Future ... And It's Grim". Yahoo Finance. 
  4. ^ Bishop, Tricia (August 10, 2007). "$1.5 million payback ordered in SEC suit". Baltimore Sun. Retrieved 26 September 2012. 
  5. ^ a b c d e f "Porter Stansberry Profile". Townhall.com. 
  6. ^ "Daily Wealth". Dailywealth.com. 
  7. ^ "Agora Inc.". Agora. 
  8. ^ "The Fleet Street Letter". 
  9. ^ a b c "Yahoo Finance Tech Ticker with Aaron Task". Yahoo Finance. 
  10. ^ "The Roger Hedgecock Show". Radio America. Retrieved 16 March 2011. 
  11. ^ a b "Is the Stock Market Lying To Us? – Episode 035". Off the Grid News. 
  12. ^ "As the Worm Turns – Episode 028". Off the Grid News. 
  13. ^ "Alex Jones – InfoWars" (mp3). Retrieved 14 December 2012. 
  14. ^ "The Alex Jones Show". Retrieved 23 February 2011. 
  15. ^ "Silver Prices Kindled by Unorthodox Investors". KUOW NPR (Washington: University of Washington). June 11, 2011. 
  16. ^ a b "Complaint, Agora, Inc, Pirate Investor, LLC, and Frank Porter Stansberry, Defendant". Retrieved June 30, 2013. 
  17. ^ "Securities and Exchange Commission, Plaintiff, v. AGORA, INC., PIRATE INVESTOR, LLC and FRANK PORTER STANSBERRY". United States Securities and Exchange Commission. 
  18. ^ a b "Porter Stansberry on "The End of America"". Asset Strategies International. 
  19. ^ a b c "The End of America?". The Motley Fool. Retrieved 9 June 2011. 
  20. ^ a b c d e f "Dow 20,000 vs. ‘The End of America’: James Altucher Debates Porter Stansberry". Business Insider. Retrieved 17 August 2011. 
  21. ^ a b Suebsaeng, Asawin (November 29, 2012). "The Latest Right-Wing Conspiracy Theory: Obama's Third Term". Mother Jones. Retrieved 2012-12-17.